We all know most realtors are the losers of society, who couldn't cut it in a real profession. We all know the system is broken, this 6% thing, that actually incents the agent to work against the interests of the client. And we all know now that on Bring Your Parent to School day, bringing your mom the agent will soon be below the kid who brought his mom the crack whore.
From the worthless, ignored and laughable NAR realtor code of ethics:
REALTORS® shall cooperate with other brokers except when cooperation is not in the client’s best interest.
REALTORS® shall not misrepresent the availability of access to show or inspect a listed property.
From the NY Times expose "The Last Stand of the 6-Percenters" (read the whole article too - it's good)
WHEN David and Annette Wolf decided that their family was outgrowing its Seattle area home, they also decided that they did not need much help finding a new one. They combed Internet listings of homes for sale until they spotted a four-bedroom house on a cul-de-sac with a three-car garage and 2.5 acres.
But the seller’s agent refused to show it to them.
Why would she turn away an eager buyer? Not because of the Wolfs’ race, creed or color. Instead, Mr. Wolf, a software engineering manager at the online directory InfoSpace, said he and his wife were shunned once the agent learned they used an online broker called Redfin.
Mr. Wolf said they turned to Redfin because it gives two-thirds of its sales commission (which is usually 3 percent of the sale price) to its customers.
“I didn’t want to pay 3 percent for the opening of a door,” he said. But customers like Mr. Wolf — affluent and comfortable with the Internet — are a frightening prospect for real estate agents who, as a group, reap at least $60 billion a year in commission income.
As it turned out, the Wolfs’ offer was the highest of five bids made for the house they wanted, and they were able to buy it despite the balky broker.
“I’d like to have been the fly on the wall for the conversation between that seller and his agent,” said Joseph J. Fox, chief executive of BuySide and a founder of one of the earliest online stock brokerage firms, WebStreet. “The amazing thing,” he added, “is that the selling agent still got paid and made $15,000 to $20,000.”
September 03, 2006
HP's message to the realtors of America: The gig is up, you're being disintermediated, and you only have yourselves and your lack of ethics to blame
Posted by blogger at 9/03/2006